(Adds earnings outlook, shares)
By Tiisetso Motsoeneng
JOHANNESBURG Feb 23 (Reuters) – South Africa’s
Steinhoff International could raise at least $2 billion
when it eventually floats its European unit, the furniture
maker’s head of investor relations said on Thursday.
Steinhoff, Africa’s top furniture maker and one of Europe’s
biggest furniture retailers, could list the European business in
London, Paris or Frankfurt, said Mariza Nel, Steinhoff’s head of
investors relations.
“The European unit is listable. It’s big enough but we’re
not in a hurry,” she said, adding the listing could raise a
minimum of 1.5 billion euros ($2 billion) depending on the free
float requirements of the bourse it floats in.
Nel said there was no clear date as to when the company
would list the unit.
The company said after the close of trade on Thursday that
first-half results likely rose by as much as 50 percent, helped
by the inclusion of earnings from unit Conforama Holdings, which
it acquired in March 2011, and a more favourable euro-rand
exchange rate.
Shares of Steinhoff jumped 5.1 percent to 26.56 rand by 1423
GMT, putting it on track for its biggest one-day gain since May
2010.
An initial public offering of the business would complete
Steinhoff’s restructuring drive aimed at creating three listed
separate businesses focused on manufacturing, selling furniture
in Europe and sales in emerging markets.
Steinhoff sells furniture in Britain under the Harveys and
Sleepmasters brands and in the rest of Europe under the
Conforama brand.
The company also wants to increase its stake in South
African retailer JD Group in share-swap deal that would
reduce its holding in manufacturing firm Kap International
to about 62 percent.
($1 = 0.7552 euros)
(Editing by David Dolan)
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